|Journey to IFRS
India, in 2011, joins the global accounting revolution: International Financial Reporting Standards.
IFRS issued by the International Accounting Standards Board (IASB) are increasingly being recognized as Global Reporting Standards. Convergence with IFRS issued by the International Accounting Standards Board (IASB) has gained momentum in recent years all over the World. More than 100 countries such as countries of European Union, Australia, New Zealand, China and Russia currently require or permit the use of IFRS in their countries. Apart from India, countries like Japan, Sri Lanka, Canada and Korea have also committed to adopt IFRS from 2011. United States of America has also taken-up convergence projects with the IASB with a view to permit filing of IFRS-Compliant Financial Statements in the US Stock Exchanges without requiring the presentation of reconciliation statement.
Convergence with IFRS is not just about switching over from one set of accounting & reporting standards to another. It takes the description of a revolution because conceptual differences are expected.
Convergence is more about a complete business and financial strategy to adopt international standards which is expected to be a long drawn process, depending upon the nature of business, volume of operations, countries of operations (domestic and foreign), group structure (subsidiaries, associates, joint ventures), growth strategy (organic or inorganic), level of computerization, technical skill levels of staff members and many other such factors, involving investment of time and resources. We believe that now is the right time to gear up for IFRS.
There is no precedence for convergence in India and there is no model strategy for convergence in India. The convergence strategy for each industry and each player would be customized and unique.
We are committed to help you migrate to IFRS as smoothly as possible, and look forward to teaming with you on this challenging but exciting journey.